The Federal Trade Commission (FTC) of the USA, recently started an antitrust investigation in the several elements of Microsoft business. The company’s such as cloud computing, cybersecurity, software licensing and artificial intelligence are under this investigation of the FTC.
The Federal Trade Commission (FTC) claims and puts allegations on Microsoft that it is violating the market powers. They claim that Microsoft is imposing disciplinary terms for avoiding their customers migrating their data from Azure to other platforms. Bloomberg stated that the actual aim of FTC investigation is the claim of market dominance and other anti-competitive practices.
The Federal Trade Commision (FTC) has opened this investigation on the request of Google LLC. In June 2023, Google wrote a letter to FTC. In the letter Google put an allegation on Microsoft of involvement in anti-competitive practices.
In the letter, Google wrote that Microsoft implemented software licensing restrictions. This will force customers to use its Azure Cloud computing services for saving money. Google also claimed that Microsoft is misusing their dominant position of Windows Server and Office. It will force customers to use Azure and use complex web licensing restrictions. These are designed to avoid businesses to expand their enterprise software retailer.
It is being said that the investigation will go further from Azure and other cloud products. According to the latest report, apart from the licensing issues, the FTC will also investigate the cybersecurity businesses and Ai products of Microsoft.
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For the further investigation, the FTC has ordered Microsoft to make a detail of information of more than 100 pages. According to news and sources the details will cover the informal discussion of Microsoft with competitors and partners. The detail will also include how Microsoft ties up the productivity and security software with Azure cloud.
Earlier this year, the government Cyber Security Review Board reviewed Microsoft security. After reviewing, they have drawn a conclusion that the security of Microsoft is poor and needs maintenance service. After this review the CEO of the Cyber Security Review Board Satya Nadella issued a brief written message to the employees. In the message he stated “If you faced a tradeoff between security and another priority, your answer is clear: Do security”.
Due to this issue, Microsoft is facing a danger of lawsuit that would be brought by the FTC. If this lawsuit has been brought then it will put Microsoft into the familiar position. This is not the first time that the company is facing an investigation from the FTC. In the late 90s, Microsoft faced an anti-monopoly lawsuit from the Department of Justice. It happened as a penalty of tying web browsers and Windows Operating System.
Keep in mind that the government of the USA has a big role in all of these scenarios. The current chairman of the FTC Lina Khan will be soon replaced by the US government and President Donald Trump. The inauguration day will take place on January 20, 2025. The current reports state that the government will select one of the two current commissioners as a chairman. It is not obvious what step the coming President Trump will take.
Microsoft has a relief due to the newly elected US President. The newly elected President Donald Trump and his administration is likely to go easier with them due to the promise to reduce regulations and other hurdles.
We will updated our audience with further news related to Microsoft. Till then you can read other news.
